Hurricane Sandy and the Disaster-Preparedness Economy


Jeffrey Phelps for The New York Times


An assembly line at a Generac Power Systems plant. Generac makes residential generators, coveted items in the wake of Hurricane Sandy.





FOLKS here don’t wish disaster on their fellow Americans. They didn’t pray for Hurricane Sandy to come grinding up the East Coast, tearing lives apart and plunging millions into darkness.


But the fact is, disasters are good business in Waukesha. And, lately, there have been a lot of disasters.


This Milwaukee suburb, once known for its curative spring waters and, more recently, for being a Republican stronghold in a state that President Obama won on Election Day, happens to be the home of one of the largest makers of residential generators in the country. So when the lights go out in New York — or on the storm-savaged Jersey Shore or in tornado-hit Missouri or wherever — the orders come pouring in like a tidal surge.


It’s all part of what you might call the Mad Max Economy, a multibillion-dollar-a-year collection of industries that thrive when things get really, really bad. Weather radios, kerosene heaters, D batteries, candles, industrial fans for drying soggy homes — all are scarce and coveted in the gloomy aftermath of Hurricane Sandy and her ilk.


It didn’t start with the last few hurricanes, either. Modern Mad Max capitalism has been around a while, decades even, growing out of something like old-fashioned self-reliance, political beliefs and post-Apocalyptic visions. The cold war may have been the start, when schoolchildren dove under desks and ordinary citizens dug bomb shelters out back. But economic fears, as well as worries about climate change and an unreliable electronic grid have all fed it.


 Driven of late by freakish storms, this industry is growing fast, well beyond the fringe groups that first embraced it. And by some measures, it’s bigger than ever.


Businesses like Generac Power Systems, one of three companies in Wisconsin turning out generators, are just the start.


The market for gasoline cans, for example, was flat for years. No longer. “Demand for gas cans is phenomenal, to the point where we can’t keep up with demand,” says Phil Monckton, vice president for sales and marketing at Scepter, a manufacturer based in Scarborough, Ontario. “There was inventory built up, but it is long gone.”


Even now, nearly two weeks after the superstorm made landfall in New Jersey, batteries are a hot commodity in the New York area. Win Sakdinan, a spokesman for Duracell, says that when the company gave away D batteries in the Rockaways, a particularly hard-hit area, people “held them in their hands like they were gold.”


Sales of Eton emergency radios and flashlights rose 15 percent in the week before Hurricane Sandy — and 220 percent the week of the storm, says Kiersten Moffatt, a company spokeswoman. “It’s important to note that we not only see lifts in the specific regions affected, we see a lift nationwide,” she wrote in an e-mail. “We’ve seen that mindfulness motivates consumers all over the country to be prepared in the case of a similar event.”


Garo Arabian, director of operations at B-Air, a manufacturer based in Azusa, Calif., says he has sold thousands of industrial fans since the storm. “Our marketing and graphic designer is from Syria, and he says: ‘I don’t understand. In Syria, we open the windows.’ ”


But Mr. Arabian says contractors and many insurers know that mold spores won’t grow if carpeting or drywall can be dried out within 72 hours. “The industry has grown,” he says, “because there is more awareness about this kind of thing.”


Retailers that managed to stay open benefited, too. Steve Rinker, who oversees 11 Lowe’s home improvement stores in New York and New Jersey, says his stores were sometimes among the few open in a sea of retail businesses.


Predictably, emergency supplies like flashlights, lanterns, batteries and sump pumps sold out quickly, even when they were replenished. The one sought-after item that surprised him the most? Holiday candles. “If anyone is looking for holiday candles, they are sold out,” he says. “People bought every holiday candle we have during the storm.”


If the hurricane was a windfall for Lowe’s, its customers didn’t seem to mind. Rather, most appeared exceedingly grateful when Mr. Rinker, working at a store in Paterson, N.J., pointed them toward a space heater, or a gasoline can, that could lessen the misery of another day without power.


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David Petraeus, Seen as an Invincible C.I.A. Director, Self-Destructs


Alex Wong/Getty Images


David H. Petraeus, with his wife, Holly, in 2011 during his confirmation hearing in the Senate before becoming director of the Central Intelligence Agency.







WASHINGTON — David H. Petraeus’s “Rules for Living” appeared on The Daily Beast Web site on Monday, posted by his biographer, a fellow West Point graduate 20 years his junior named Paula Broadwell. The fifth rule, beneath his familiar portrait in full military regalia, began: “We all make mistakes. The key is to recognize them and admit them.”




Mr. Petraeus took his own advice on Friday and resigned as director of the Central Intelligence Agency after admitting to an extramarital affair; officials identified the woman in question as Ms. Broadwell. The full back story is not yet clear, though his affair came to light after F.B.I. agents conducting a criminal investigation into possible security breaches examined his computer e-mails. The decision to step down was his.


Few imagined that such a dazzling career would have so tawdry and so sudden a collapse. Mr. Petraeus, a slender fitness fanatic, is known as a brainy ascetic. He and his wife, Holly, whose father was the superintendent at West Point when Mr. Petraeus graduated in 1974, and their two grown children had long been viewed by military families as an inspiration, a model for making a marriage work despite the separation and hardship of long deployments overseas.


After he began the C.I.A. job in September 2011, the couple settled into a house in the Virginia suburbs and began the closest thing to a normal life together that they had had in years, even if the basement he had designated for a home gym was commandeered for secure C.I.A. communications gear.


After years in war zones, Mr. Petraeus told friends, he was amazed to eat dinner most nights with his wife and to discover weekends again. He told friends that on the day his daughter was married last month, he went for a 34-mile bike ride.


“It’s a personal tragedy, of course, but it’s also a tragedy for the country,” said Bruce Riedel, a C.I.A. veteran and a presidential adviser.


Like many others in jaundiced Washington, Mr. Riedel wondered whether the affair really required Mr. Petraeus, who turned 60 on Wednesday, to step down and leave the agency leaderless. But under the military law that governed his 37-year Army career, adultery is a crime when it may “bring discredit upon the armed forces.” And a secret affair can make an intelligence officer vulnerable to blackmail.


The C.I.A. director, Mr. Riedel said, probably felt he had no choice.


“I think Dave Petraeus grew up with a code that’s very demanding about duty and honor,” he said. “He violated the code.”


Ambition and Ability


He was the pre-eminent military officer of his generation, a soldier-scholar blazing with ambition and intellect, completing his meteoric rise as a commander in the Iraq and Afghanistan wars. Worshipful Congressional committees lauded him as a miracle worker for helping turn the war in Iraq around, applying a counterinsurgency strategy he had helped devise and that was widely viewed for a time as the future of warfare. Then, dispatched to Afghanistan to replace Gen. Stanley McChrystal, who had been fired by President Obama, he quietly shifted away from the doctrine he had championed and adopted an aggressive counterterrorism strategy.


He was fiercely competitive and carefully protective of his reputation. Asked to throw out the first pitch at the 2008 World Series, he brought his security detail to Washington’s stadium to practice getting the ball over the plate.


Mr. Petraeus had seemed all but indestructible. He had been shot in a training accident, broken his pelvis in a sky diving mishap and survived prostate cancer. Criticized by the antiwar group MoveOn.org in 2007 as “General Betray Us,” he shrugged off the attack and rallied his indignant supporters. Until Friday, fans speculated that post-C.I.A. he might become president of Princeton University, where he had earned his Ph.D. in international relations in 1987, or conceivably even president of the United States. (He has told friends he will never run for president; to show his impartiality, while in the military, he did not vote.)


Reporting was contributed by Thom Shanker, Michael R. Gordon and David E. Sanger from Washington, and Viv Bernstein from Charlotte, N.C.



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Out of hospital, Beljan keeps lead at Disney

LAKE BUENA VISTA, Fla. (AP) — Charlie Beljan was in a hospital bed in the middle of the night, still wearing his golf shoes, thinking his season was over.

He was about six hours from his tee time Saturday at Disney. Just 12 hours earlier, he was having a panic attack on the golf course so severe that he could barely breathe, his blood pressure spiked and his arms felt numb. After signing his card, he was strapped into a stretcher, loaded into an ambulance and taken to a hospital.

"I thought I literally had a chance to die," Beljan said.

In a turnaround that even by Disney's standards seems like a fairy tale, the 28-year-old rookie now has a chance to win his first PGA Tour title.

Beljan was released from the hospital, overcame two early bogeys and was solid over the final hour in the Children's Miracle Network Hospitals Classic for a 1-under 71 that gave him a two-shot lead going into the final round.

"I honestly didn't know if I was going to play one hole, any holes or was I going to get through the day," Beljan said. "I felt good, better as the day went on, and I just hung tough, hung in there. I knew what the rewards were at the end of the week if I could pull something off, and that's kind of what kept me going."

The rewards were ample.

This is the final PGA Tour event of the year, and Beljan is No. 139 on the money list. Only the top 125 get full cards for next year. Doctors told him he was in good enough health to be released, but perhaps not to play golf. He ignored their recommendations.

"The position I'm in, it's kind of hard not to show up," he said before teeing off.

Beljan had a pair of three-putt bogeys that cost him his three-shot lead after three holes, and felt some tightening in his chest as he approached the turn, the same symptoms that caused much fear Friday. But he steadied himself, began the back nine with back-to-back birdies, and kept in front.

He was at 13-under 203, two shots ahead of Brian Gay (67), Josh Teater (67) and Charlie Wi, who was tied for the lead until closing with two bogeys for a 70.

"It's nice to be able to walk around and smile," Beljan said. "Yesterday, I was hanging on for my life."

When last seen at Disney, Beljan was gasping to draw a big breath and sitting in the fairway to wait his turn to hit. Paramedics followed him around the back nine after taking his blood pressure on the 10th tee. After signing for a 64, Beljan emerged from the scoring room strapped into a stretcher and was loaded into an ambulance.

For most of the night, he felt 99 percent sure he wouldn't be playing. But with the comfort of knowing that he was physically fine, he went back to his hotel for a shower, breakfast and headed to the golf course. Despite being nervous that another episode could strike again, he was steady for so much of the day.

Now comes the hard work.

Beljan's wife, 7-week-old son and mother-in-law were flying in from Phoenix for the final round. He has long dreamed of how cool it would be to have his family come onto the green to celebrate his first PGA Tour win.

But there's a long way to go.

Beljan's three-shot lead was gone before he stepped onto the fourth tee in the third round. He will start Sunday with 11 players separated by three shots. That includes Sea Island winner Tommy Gainey and Camilo Villegas, winless in four years, along with Robert Garrigus, who won at Disney two years ago. The group at 205 included Vaughn Taylor, who like Beljan is making a last-ditch effort to keep his card.

Beljan was simply thrilled to be playing.

"I think the big advantage for me is I'm not thinking about the golf or the putts or the chips or the shots or the swings," said Beljan, who didn't even realize he was in the lead until about 10:30 p.m. Friday at the hospital. "I'm just thinking about my health, one shot at a time, one hole at a time. And shoot, the last 36 holes it's worked out pretty well."

Beljan showed off his power on the opening hole when he was behind a tree 183 yards from the hole. He hit a pitching wedge straight up and over the tree, with enough on it to reach the green. He three-putted from 50 feet, however, and then dropped another shot on the par-3 third with a three-putt from about 25 feet on the fringe.

His only other bogey came from a bunker on the 12th.

Several players made a run at him — Wi, Gainey among them — and Charles Howell III was right in the mix. Howell was one shot out of the lead until driving into the water on the 17th to make triple bogey, and then making bogey on the last hole to finish five shots behind.

Beljan said a variety of tests showed nothing was wrong with him.

"Physically, everything is wonderful," he said. "It's that little space between those ears that I've got to work on."

This all started about three months ago when he fainted on a flight home from the Reno-Tahoe Open as he was going to the bathroom. Since then, Beljan said he has had a half-dozen panic attacks, usually in controlled environments when he can settle himself down. This one came on a golf course, and it spiraled out of control on Friday.

When he showed up at the course, he felt nervous and a little embarrassed about Friday's afternoon's episodes. But he doesn't mind the travails if it means a chance to win a tournament, or even keep his job for next year. Even if he doesn't win, Beljan would need to finish around 10th to move into the top 125.

Besides, it would be a fitting way for a wild year to end.

After getting his card at Q-school last year, he had hand surgery before starting the season. He found out at the Sony Open that he was going to be a father. He was married in March. He played poorly all year except for one week at the Greenbrier. His baby was born at the end of the FedEx Cup season. He fainted on the plane. He at least secured a spot inside the top 150, only to realize that won't mean as much next year because of a shorter season.

"It's been a long, exciting, hectic, crazy, stressful year," he said. "But hopefully, we're going to end it with a bang."

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The New Old Age Blog: The Emotional Aftermath of Hurricane Sandy

Let’s talk about the emotional aftermath of the storm that left tens of thousands of older people on the East Coast without power, bunkered down in their homes, chilled to the bone and out of touch with the outside world.

Let’s name the feelings they may have experienced. Fear. Despair. Hopelessness. Anxiety. Panic.

Linda Leest and her staff at Services Now for Adult Persons in Queens heard this in the voices of the older people they had been calling every day, people who were homebound and at risk because of medical conditions that compromise their physical functioning.

“They’re afraid of being alone,” she said in a telephone interview a few days after the storm. “They’re worried that if anything happens to them, no one is going to know. They feel that they’ve lost their connection with the world.”

What do we know about how older adults fare, emotionally, in a disaster like that devastating storm, which destroyed homes and businesses and isolated older adults in darkened apartment buildings, walk-ups and houses?

Most do well — emotional resilience is an underappreciated characteristic of older age — but those who are dependent on others, with pre-existing physical and mental disabilities, are especially vulnerable.

Most will recover from the disorienting sense that their world has been turned upside down within a few weeks or months. But some will be thrown into a tailspin and will require professional help. The sooner that help is received, the more likely it is to prevent a significant deterioration in their health.

The best overview comes from a November 2008 position paper from the American Association for Geriatric Psychiatry that reviewed the effects of Hurricane Katrina and other disasters. After Katrina, “the elderly had the highest mortality rates, health decline and suicide rates of any subgroup,” that document notes. “High rates of psychosomatic problems were seen, with worsening health problems and increased mortality and disability.”

This is an important point: Emotional trauma in older adults often is hard to detect, and looks different from what occurs in younger people. Instead of acknowledging anxiety or depression, for instance, older people may complain of having a headache, a bad stomachache or some other physical ailment.

“This age group doesn’t generally feel comfortable talking about their feelings; likely, they’ll mask those emotions or minimize what they’re experiencing,” said Dr. Mark Nathanson, a geriatric psychiatrist at Columbia University Medical Center.

Signs that caregivers should watch out for include greater-than-usual confusion in an older relative, a decline in overall functioning and a disregard for “self care such as bathing, eating, dressing properly and taking medication,” Dr. Nathanson said.

As an example, he mentioned an older man who had “been sitting in a cold house for days and decided to stop taking his water pill because he felt it was just too much trouble.” Being distraught or distracted and forgetting or neglecting to take pills for chronic conditions like diabetes or heart disease can have immediate harmful effects.

Especially at risk of emotional disturbances are older adults who are frail and advanced in age, those who have cognitive impairments like Alzheimer’s disease, those with serious mental illnesses like schizophrenia or major depression, and those with chronic medical conditions or otherwise in poor physical health, according to the geriatric psychiatry association’s position paper.

A common thread in all of the above is the depletion of physical and emotional reserves, which impairs an older person’s ability to adapt to adverse circumstances.

“In geriatrics, we have this idea of the ‘geriatric cascade’ that refers to how a seemingly minor thing can set in motion a functional, cognitive and psychological downward spiral” in vulnerable older adults, said Dr. Mark Lachs, chief of the division of geriatrics at Weill Cornell Medical College. “Well, the storm was a major thing — a very large disequilibrating event — and its impact is an enormous concern.”

Of special concern are older people who may be in the early stages of Alzheimer’s disease or other types of dementia who are living alone. For this group, the maintenance of ordinary routines and the sense of a dependable structure in their lives is particularly important, and “a situation like Sandy, which causes so much disruption, can be a tipping point,” Dr. Lachs said.

Also of concern are older people who may have experienced trauma in the past, and who may suffer a reignition of post-traumatic stress symptoms because of the disaster.

Most painful of all, for many older adults, is the sense of profound isolation that can descend on those without working phones, electricity or relatives who can come by to help.

“That isolation, I can’t tell you how disorienting that can be,” said Bobbie Sackman, director of public policy for the Council of Senior Centers and Services of New York City. “They’re scared, but they won’t tell you because they’re too proud and ashamed to ask for help.”

The best remedy, in the short run, is the human touch.

“Now is the time for people to reach out to their neighbors in high-rises or in areas where seniors are clustered, to knock on doors and ask people how they are doing,” said Dr. Gary Kennedy, director of the division of geriatric psychiatry at Montefiore Medical Center in the Bronx.

Don’t make it a one-time thing; let the older person know you’ll call or come by again, and set up a specific time so “there’s something for them to look forward to,” Dr. Kennedy said. So-called naturally occurring retirement communities with large concentrations of older people should be organizing from within to contact residents who may not be connected with social services and find out how they’re doing, he recommended.

In conversations with older adults, offer reassurance and ask open-ended questions like “Are you low on pills?” or “Can I run out and get you something?” rather than trying to get them to open up, experts recommended. Focusing on problem-solving can make people feel that their lives are being put back in order and provide comfort.

Although short-term psychotherapy has positive outcomes for older adults who’ve undergone a disaster, it’s often hard to convince a senior to seek out mental health services because of the perceived stigma associated with psychological conditions. Don’t let that deter you: Keep trying to connect them with services that can be of help.

Be mindful of worrisome signs like unusual listlessness, apathy, unresponsiveness, agitation or confusion. These may signal that an older adult has developed delirium, which can be extremely dangerous if not addressed quickly, Dr. Nathanson said. If you suspect that’s the case, call 911 or make sure you take the person to the nearest hospital emergency room.

This is a safe place to talk about all kinds of issues affecting older adults. Would you be willing to share what kinds of mental health issues you or family members are dealing with since the storm so readers can learn from one another?

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Hurricane Sandy and the Disaster-Preparedness Economy


Jeffrey Phelps for The New York Times


An assembly line at a Generac Power Systems plant. Generac makes residential generators, coveted items in the wake of Hurricane Sandy.





FOLKS here don’t wish disaster on their fellow Americans. They didn’t pray for Hurricane Sandy to come grinding up the East Coast, tearing lives apart and plunging millions into darkness.


But the fact is, disasters are good business in Waukesha. And, lately, there have been a lot of disasters.


This Milwaukee suburb, once known for its curative spring waters and, more recently, for being a Republican stronghold in a state that President Obama won on Election Day, happens to be the home of one of the largest makers of residential generators in the country. So when the lights go out in New York — or on the storm-savaged Jersey Shore or in tornado-hit Missouri or wherever — the orders come pouring in like a tidal surge.


It’s all part of what you might call the Mad Max Economy, a multibillion-dollar-a-year collection of industries that thrive when things get really, really bad. Weather radios, kerosene heaters, D batteries, candles, industrial fans for drying soggy homes — all are scarce and coveted in the gloomy aftermath of Hurricane Sandy and her ilk.


It didn’t start with the last few hurricanes, either. Modern Mad Max capitalism has been around a while, decades even, growing out of something like old-fashioned self-reliance, political beliefs and post-Apocalyptic visions. The cold war may have been the start, when schoolchildren dove under desks and ordinary citizens dug bomb shelters out back. But economic fears, as well as worries about climate change and an unreliable electronic grid have all fed it.


 Driven of late by freakish storms, this industry is growing fast, well beyond the fringe groups that first embraced it. And by some measures, it’s bigger than ever.


Businesses like Generac Power Systems, one of three companies in Wisconsin turning out generators, are just the start.


The market for gasoline cans, for example, was flat for years. No longer. “Demand for gas cans is phenomenal, to the point where we can’t keep up with demand,” says Phil Monckton, vice president for sales and marketing at Scepter, a manufacturer based in Scarborough, Ontario. “There was inventory built up, but it is long gone.”


Even now, nearly two weeks after the superstorm made landfall in New Jersey, batteries are a hot commodity in the New York area. Win Sakdinan, a spokesman for Duracell, says that when the company gave away D batteries in the Rockaways, a particularly hard-hit area, people “held them in their hands like they were gold.”


Sales of Eton emergency radios and flashlights rose 15 percent in the week before Hurricane Sandy — and 220 percent the week of the storm, says Kiersten Moffatt, a company spokeswoman. “It’s important to note that we not only see lifts in the specific regions affected, we see a lift nationwide,” she wrote in an e-mail. “We’ve seen that mindfulness motivates consumers all over the country to be prepared in the case of a similar event.”


Garo Arabian, director of operations at B-Air, a manufacturer based in Azusa, Calif., says he has sold thousands of industrial fans since the storm. “Our marketing and graphic designer is from Syria, and he says: ‘I don’t understand. In Syria, we open the windows.’ ”


But Mr. Arabian says contractors and many insurers know that mold spores won’t grow if carpeting or drywall can be dried out within 72 hours. “The industry has grown,” he says, “because there is more awareness about this kind of thing.”


Retailers that managed to stay open benefited, too. Steve Rinker, who oversees 11 Lowe’s home improvement stores in New York and New Jersey, says his stores were sometimes among the few open in a sea of retail businesses.


Predictably, emergency supplies like flashlights, lanterns, batteries and sump pumps sold out quickly, even when they were replenished. The one sought-after item that surprised him the most? Holiday candles. “If anyone is looking for holiday candles, they are sold out,” he says. “People bought every holiday candle we have during the storm.”


If the hurricane was a windfall for Lowe’s, its customers didn’t seem to mind. Rather, most appeared exceedingly grateful when Mr. Rinker, working at a store in Paterson, N.J., pointed them toward a space heater, or a gasoline can, that could lessen the misery of another day without power.


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Citing Affair, Petraeus Resigns as C.I.A. Director



The sudden development came just days after President Obama won re-election to a second term. Mr. Petraeus, a highly decorated general who had led the wars in Iraq and Afghanistan, had been expected to remain in the president’s administration.


Instead, Mr. Petraeus said in the statement that the president accepted his resignation on Friday after he had informed him of his indiscretion a day earlier.


“After being married for over 37 years, I showed extremely poor judgment by engaging in an extramarital affair,” Mr. Petraeus wrote. “Such behavior is unacceptable, both as a husband and as the leader of an organization such as ours. This afternoon, the president graciously accepted my resignation.”


Mr. Obama released a statement praising Mr. Petraeus for his “extraordinary service” to the country and saying that Michael J. Morell, the deputy director of the C.I.A., would take over once again as acting director. He served in that position briefly after Leon E. Panetta left the agency last year.


“By any measure, through his lifetime of service, David Petraeus has made our country safer and stronger,” the president said. Without directly addressing the affair, Mr. Obama added: “Going forward, my thoughts and prayers are with Dave and Holly Petraeus, who has done so much to help military families through her own work. I wish them the very best at this difficult time.” Ms. Petraeus is the assistant director of the Office of Servicemember Affairs at the Consumer Financial Protection Bureau.


The development came as a shock to the national security establishment. In a statement, James R. Clapper, the director of national intelligence, called the decision “a loss” to the country.


“Dave’s decision to step down represents the loss of one of our nation’s most respected public servants.” Mr. Clapper wrote. “From his long, illustrious Army career to his leadership at the helm of C.I.A., Dave has redefined what it means to serve and sacrifice for one’s country.”


By acknowleding an extramarital affair, Mr. Petraeus, 60, was confronting a sensitive issue for a spy chief. Intelligence agencies are often concerned about the possibility that agents who engage in such behavior could be blackmailed for information.


In his statement, Mr. Petraeus did not provide any details about his behavior, saying that he asked the president to be allowed “for personal reasons” to resign.


Mr. Petraeus praised his colleagues at the C.I.A.’s headquarters in Langley, Va., calling them “truly exceptional in every regard” and thanking them for their service to the country. He made it clear that his departure was not how he had envisioned ending a storied career in the military and in intelligence.


“Teddy Roosevelt once observed that life’s greatest gift is the opportunity to work hard at work worth doing,” he said. “I will always treasure my opportunity to have done that with you, and I will always regret the circumstances that brought that work with you to an end.”


Over the last several years, Mr. Petraeus had become one of the most recognizable military officials, serving as the public face of the war effort in Congress and on television.


Under President George W. Bush, Mr. Petraeus was credited for helping to develop and put in place the “surge” in troops in Iraq that helped wind down the war in that country. Mr. Petraeus was moved to Afghanistan in 2010 after Mr. Obama fired General Stanley H. McChrystal over comments he made to a magazine reporter.


In Afghanistan, Mr. Petraeus led the push for a similar increase in troops ordered by Mr. Obama, but he was unable to replicate the success he had in the Iraq conflict.


Last year, Mr. Obama persuaded Mr. Petraeus to leave the Army after 37 years to lead the C.I.A., succeeding Mr. Panetta, who moved to the Defense Department.


This article has been revised to reflect the following correction:

Correction: November 9, 2012

An earlier version of this article incorrectly stated that David H. Petraeus was expected to remain in President Obama’s cabinet. The C.I.A. director is not a cabinet member in the Obama administration.



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Beljan nearly passes out on his way to the lead

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The New Old Age Blog: More Time to Enroll in Medicare If You Live in Storm Areas

Medicare beneficiaries battered by Hurricane Sandy have one fewer problem to worry about: Federal officials have extended the Dec. 7 deadline to enroll in a private medical or drug plan for next year for those still coping with storm damage.

The Centers for Medicare and Medicaid Services “understands that many Medicare beneficiaries have been affected by this disaster and wants to ensure that all beneficiaries are able to compare their options and make enrollment choices for 2013,” Arrah Tabe-Bedward, acting director for the Medicare Enrollment and Appeals Group, wrote in a Nov. 7 letter to health insurance companies and state health insurance assistance programs.

Beneficiaries hit by the storm can still enroll after the Dec. 7 midnight deadline if they call Medicare’s 24-hour information line: 1-800-MEDICARE (1-800-633-4227). Representatives will be able to review available plans and complete the enrollment process over the phone.

“We are committed to giving people with Medicare the information and the time they need to make important decisions about their coverage,” a Medicare spokeswoman, Isabella Leung, said in an e-mail message. Medicare officials have not set a new deadline but have encouraged beneficiaries to make their decisions soon if possible.

People currently in a plan will be automatically re-enrolled for next year in the same plan.

The extra time also applies to any beneficiaries who normally get help from family members or others to sort through dozens of plans, but who have been unable to do so this year because they live in areas affected by the storm. Neither beneficiaries nor those who provide them assistance will be required to prove that they experienced storm damage.

“This is a really important recognition by CMS to accommodate Medicare enrollees affected by Hurricane Sandy,” said Leslie Fried, director for policy and programs at the National Council on Aging, an advocacy group in Washington.

After the hurricane, the Obama administration declared Connecticut, New Jersey, New York and Rhode Island “major disaster areas,” according to the Federal Emergency Management Agency. In addition, FEMA issued emergency declarations for parts of Delaware, the District of Columbia, Maryland, Massachusetts, New Hampshire, Pennsylvania, Virginia and West Virginia.

More than four million older people in those states are enrolled in drugs-only plans, and more than 2.8 million have Medicare Advantage policies, which includes medical and health coverage.

Susan Jaffe is a writer for Kaiser Health News, an editorially independent program of the Henry J. Kaiser Family Foundation, a nonprofit, nonpartisan health policy research and communication organization not affiliated with Kaiser Permanente.

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Common Sense: At Martha Stewart Living, Martha May Be the Problem


Among America’s corporate leaders, there are surely few whose interests are more closely aligned with their shareholders than the homemaking icon Martha Stewart. She owns 26 million shares and controls nearly 90 percent of the voting rights of Martha Stewart Living Omnimedia. She’s the company’s nonexecutive chairman and serves on the board. Martha Stewart, the company, is inseparable from Martha Stewart, the person.


Her net worth is inextricably tied to the value of the shares. That would seem obvious to everyone except, perhaps, Ms. Stewart herself. She continues to collect lavish multimillion-dollar compensation and perks while her company teeters under the weight of huge losses, its shares trading for a fraction of their former value. The paradox  is that if the stock had risen even $1 a share in recent years, Martha Stewart would be wealthier now than if she had taken only nominal compensation from the company.


“You’d think there’d be very little need for board oversight because of the strong alignment of the company’s interests with her personal wealth,” Paul Hodgson, a compensation expert and senior research associate at GMI Ratings, told me this week. “Everything should be pushing her to make sure the company succeeds. For some reason, that’s not happening.”


Last week, Ms. Stewart’s company reported a $50.7 million quarterly loss, a staggering amount considering it exceeded total revenue, which was just $43.5 million. That was a 17 percent drop from revenue in the same quarter last year. Although the loss included a $44.3 million noncash write-down related to the shrinking value of two of its magazines, the company until recently has been bleeding cash, which dropped from $38.5 million to just $17.4 million in the quarter. The company said it would lay off about 70 employees, 12 percent of its work force, and discontinue its stand-alone print version of the magazine Everyday Food.


None of this bad news has made much of a dent on Ms. Stewart’s own compensation.  Her base annual pay rose from $1.7 million in 2009 to $2 million in 2010 and 2011, and she received a $3 million retention bonus when she signed her new contract in 2009. She gets an additional minimum of $2 million a year under an “intangible assets license agreement,” which gives the company the rights to “Martha Stewart’s lifestyle and the public perception of Martha Stewart’s lifestyle,” including such details as how she arranges her outdoor furniture.


Her corporate perks are well known, and she has long blurred the line between business and personal expenses. She submitted as a business expense the $17,000 cost of her now-infamous holiday trip to the Mexican luxury resort Las Ventanas al Paraiso. She arrived at the resort the day she dumped her shares in the biotechnology company ImClone upon learning, en route, that the company’s chief executive was trying to sell his shares ahead of a negative Food and Drug Administration decision on the company’s principal drug. (She settled charges of insider trading brought by the Securities and Exchange Commission after being convicted of making criminal false statements to cover up the reason for the sale.) Then she had her accountant tell her companion on the trip that she’d have to pay her “fair share” of the costs, according to testimony in her 2004 trial.


The company doesn’t break out Ms. Stewart’s reimbursed expenses, but general and administrative expenses amounted to a lofty $11 million in the last quarter. That number, of course, includes many expenses besides Ms. Stewart’s, like other executives’ salaries.


The company does reveal what it calls other compensation for Ms. Stewart, which in 2011 included a personal trainer and other expenses for personal fitness; a weekend driver; security services; fees for on-air appearances; unspecified personnel costs not otherwise reimbursed by the company; insurance premiums; and an unidentified charitable contribution, which added up to over $1 million.


Ms. Stewart also receives stock options, nearly $1.8 million worth in 2009 through 2011, though she has not received any options so far this year. Still, as Mr. Hodgson put it, “Why is she even getting stock options? Her interests are already thoroughly aligned with the company, given her ownership stake.” Moreover, the intangible license agreement “is very unusual,” Mr. Hodgson said.


All told, Ms. Stewart’s compensation was $9.8 million in 2009, $5.9 million in 2010 and $5.5 million in 2011, or $21.2 million over the last three years, even as the company was in a downward spiral. Just before Ms. Stewart got out of prison in 2005, her shares were trading at over $34 and she was a billionaire. After plunging during the financial crisis, they were above $8 a share in September 2009. They traded this week at about $2.80.


Asked about the issues raised in this column, a spokesman for Martha Stewart Living Omnimedia declined to comment and said Ms. Stewart had no comment.


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A Transfer of Power Begins in China


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